general investing questions

[bigredmachine05]

This is a question for you accountants. I'm 30, make about 250k per year. As far as investments, I understand I can't do a roth for 2009 because I make too much, but I can put money in for a nondeductible ira and then convert it to a roth ira in 2010. Is this correct?

Now is my second question. I was looking at the 401k funds that my group offers which is fidelity. I noticed that all of these funds except for the fidelity prime fund FDAXX has a sales load around 4%. Could I just put 16.5k into the 401k into FDAXX for 2009 and then convert it to a roth ira in 2010 by paying the appropriate taxes and moving the funds to a no load company like Vanguard?

Lastly, what are other strategies for tax deferment besides real estate as I rather rent the place I have .

I read a boook called Missed Fortune that discussed using equity indexed universal life insurance for tax deferred growth. Do you guys consider this a good strategy?

I don't mind paying my fair share of taxes but above that I don't want to pay one dime more.

Thanks.

[Broken Arrow]

Welcome to the forums.

I am not an accountant. Please take it for what it's worth.

I can put money in for a nondeductible ira and then convert it to a roth ira in 2010. Is this correct?

Yes.

Could I just put 16.5k into the 401k into FDAXX for 2009 and then convert it to a roth ira in 2010 by paying the appropriate taxes and moving the funds to a no load company like Vanguard?

No. You can not roll a 401(k) into an IRA (Roth or otherwise) until you have left your most recent job or employer.

But if you do qualify, rolling from one company to another shouldn't be a problem.

Lastly, what are other strategies for tax deferment besides real estate as I rather rent the place I have.

Well, there are other tax-deferring shelters and there are tax-efficient taxable investments. I don't know if that's exactly what you're asking for.

Anyway, good luck, and hopefully, someone with more information will chime in and help you out.